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President Recep Tayyip Erdogan on Tuesday said Turkey would boycott US electronic goods in retaliation for punitive sanctions by Washington against Ankara over the detention of an American pastor.

"We will boycott US electronic goods," Erdogan said in a televised speech, raising the stakes in a spat that has seen the Turkish lira plunge to record lows.

"If (the United States) have the iPhone, there's Samsung on the other side," he said, referring to US giant Apple's iconic phone and the top South Korean brand.

"We (also) have our Venus and Vestel," he said about homegrown Turkish electronics brands.

Relations between the two NATO allies have plummeted in one of their worst crises in decades after the detention of US pastor Andrew Brunson on terror-related charges, sending the Turkish lira into free fall against the dollar.

Erdogan has been repeatedly photographed with Apple products including the iPhone and iPad.

He also made his now famous speech on the night of the July 2016 failed coup calling citizens out into the street through Facetime, an iPhone app.

The lira's plunge — which had been ongoing for weeks — was turned into a rout on Friday when US President Donald Trump tweeted that Washington was doubling aluminium and steel tariffs for Turkey.

Turkish Airlines also announced on Twitter that it would join a campaign circulating on social media with a hashtag #ABDyeReklamVerme [don't give ads to America].

"We, as the Turkish Airlines, stand by our state and our people. Necessary instructions on the issue have been issued to our agencies," Yahya Ustun, spokesman for the country's flag-carrier, wrote on Twitter.

Erdogan said Turkey was facing an "economic attack" and a "bigger, deeper operation" but showed no sign of making concessions to the United States.

"They don't hesitate to use the economy as a weapon," he said. "What do you want to do? What do you want to achieve," he added, referring to the US.

Erdogan admitted the Turkish economy had problems — including a widening current account deficit and inflation of almost 16 percent but added: "Thanks to God, our economy is functioning like clockwork."

Resumption of talks

Behind the scenes, however, diplomatic dialogue appears to have resumed. Turkey’s state-run news agency and US officials say US National Security adviser John Bolton had met with the Turkish ambassador to Washington on Monday.

That helped ease tensions in financial markets, with the Turkish lira stabilizing somewhat near record lows. It was up 5 percent on Tuesday, at 6.55 per dollar, having fallen 42 percent so far this year, with most of those losses coming in recent weeks.

Investors are worried not only about Turkey’s souring relations with the US, a longtime NATO ally, but also Erdogan’s economic policies and the country’s high debt accumulated in foreign currencies. Independent economists say Erdogan should let the central bank raise interest rates to support the currency, but he wants low rates to keep the economic growth going.

In a joint statement issued on Tuesday, the industrialists’ group TUSIAD and the Union of Chambers and Commodity Exchanges called on the government to allow the central bank to raise interest rates to help overcome the currency crisis.

The business groups also urged diplomatic efforts with the United States and an improvement in relations with the European Union, which is Turkey’s major trading partner.

The state-run Anadolu Agency said the finance chief would address hundreds of foreign investors on Thursday in a teleconference.

On DawnNews

Comments (78) Closed

Falcon1

Aug 14, 2018 04:42pm

Considering the relatively smaller size of Turkish economy and the tiny portion of US electronic exports to the country (barely few hundred million dollars) this is not going to make any difference to the US economy, if it was meant as a retlations for US Tariffs and other diplomatic tensions.

Turkey needs to take some bold steps in Syria, with Russia, Iran, China and EU to get Trump's attention.

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ankit

Aug 14, 2018 04:45pm

Sometimes leaders bring more trouble for a country with their ego, this is a classic case. They forget that these are people's lives they are playing with. He has now found an external enemy to blame, much like some others.

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Alba

Aug 14, 2018 04:48pm

Boycotting American electronic goods may not make the Turkish people too happy.

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Iqbal Malik

Aug 14, 2018 04:52pm

All free nations should support Turkey. And all free people of the world should watch the responses from the western countries.

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Anthony Messina Jr.

Aug 14, 2018 04:53pm

When something goes wrong in Iran, America is blamed. When something goes wrong in Turkey, America is blamed. That is one reason Americans don't like dictatorships.

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M. asghar

Aug 14, 2018 04:56pm

This is a critical moment for Turkey's economic future which cannot be allowed to be messed up by USA and their pernicious banking mafia lobby.

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billy bingham

Aug 14, 2018 04:59pm

Turkey's economy was going well until Erdogan got his hooks into it.

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Iftikhar Husain

Aug 14, 2018 05:04pm

The tool of punishment on the economy of any country can be used countries have to decide how to avoid this happening agian. The countries who have lot of deposits in US banks have lot to think about.

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Crude

Aug 14, 2018 05:05pm

The era of wars/invasion has been replaced by the night of economic wars and the USA is setting on the couch and playing the game as they have a comfortable leverage over every other country except China. They owe China 3trillions literally.

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Dr. Salaria, Aamir Ahmad

Aug 14, 2018 05:07pm

Great, bold and penetrating decision by President Erdogan of Turkey against the racist, unilateral and self-centeted policies of bigot Donald Trump and his cunning, crooked and criminal cronies. Well done and keep it up.

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Pankaj

Aug 14, 2018 05:15pm

Pakistan must think what could happen if they try to be oversmart

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Abdul Rahman Jan

Aug 14, 2018 05:19pm

Turkey, we fully support you.

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Hasnain Haque

Aug 14, 2018 05:32pm

If we all collectively did the same then soon USA WILL LISTEN. Lets all boycott American goods, this is the only way to stop this bullying.

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Guest101

Aug 14, 2018 05:36pm

He could make it easy, by just releasing the prisoner.

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Gaz

Aug 14, 2018 05:37pm

@Falcon1 agreed and also add that even if you use Samsung it’s still using Android software which is American. Unfortunately we are in a world which cannot function without American tech.

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Babu

Aug 14, 2018 05:37pm

Tayyip Erdogan should not go down without fighting. Be bold and take US by horns. Russia, China, Iran and Pakistan are with you.

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Remmy Junaid

Aug 14, 2018 05:48pm

Turkey should stay away from any kind of war. Syria is not Turkey. Stay save

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Atif

Aug 14, 2018 05:57pm

Erdogan is playing right into the hands of Trump. This is exactly the reaction he wants.

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Changez Khan

Aug 14, 2018 06:16pm

Do it where it hurts most. Buy Chinese stuff and it is cheap too.

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The truth

Aug 14, 2018 06:16pm

Why don’t they simply evict the US from
Incirlik airbase that US and NATO has been using and boycott the NATO alliance. It just seems hypocritical that erdogan claims and talks tall but follows through with punitive measures. Which are hardly a slap on the wrist.

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Selim Ozturk

Aug 14, 2018 06:21pm

The Turkish economy has been dwindling in the past since Erdogan has been in power. Now he has relatives in key positions of the ministry. Dose not look promising for Turkey.

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zeeshandxb

Aug 14, 2018 06:41pm

It can be a Turkey, China, Russia, Pakistan, Iran, Central Asian Countries that can work towards a nexus and deal in local acceptable currency. Only that kind of approach can give USA a run for the money. Involve some bleeding european union countries like spain, latvia, portugal, etc also in the same.

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SHAHID SATTAR

Aug 14, 2018 06:41pm

Time to start building up a block of like minded countries who wish to be independent of the American hegemony and control. Please lead the way and start bonding together. No more time to lose.

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Nimbus

Aug 14, 2018 06:45pm

@Falcon1 every drop of water makes a sea these little droplets make a difference might seem nothing to the near sighted, every country has to slow down and shun this urgency and take care of the interests of the citizens instead of racing for the imaginary finish line where nobody gets a prize but more running for nothing.RELAX!!

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abbastoronto

Aug 14, 2018 06:48pm

Great words for the people while Sultan Erdogan lives in his new Palace built with people's money. He should learn a thing or two from Imran.

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A. Mangal

Aug 14, 2018 06:55pm

For too long Turkey put its face towards West now needs to look at the East and engage in trade & commerce.

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Atif Khan

Aug 14, 2018 06:59pm

A a gusture of solidarity with the Turks, every Pakistan should buy a Turkish product. There are plenty of everyday products: Home appliances, confectionery, table ware, rugs, dried fruit etc.

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watchman

Aug 14, 2018 07:09pm

turkey is punching above its weight

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M. Emad

Aug 14, 2018 07:12pm

US winning in the 'trade war'with Turkey.

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mk

Aug 14, 2018 07:22pm

Turkey should stay inclusive and open. Do not use nationalism to create smoke screen. Fix problems

As long as people of Turkey support president Erdogan the nation would stay strong! President Donald Trump is loosing its grip on power, wants to save his face in the US where majority of people are fed-up with his dishonest tweets! I doubt if survives after mid-term election in USA this fall !!!

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ABE

Aug 14, 2018 07:43pm

In the greater scheme of things, this is equivalent to Turks starying from all MacDonalnds outlets in their country. Is that going to make MacDonaols suffer a huge loss or revenues, or market share world-wide?

An economy which is 5% of the size of the US economy, nothing the Turks do will make a bit of difference to the US or any US company.

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Owais Mangal

Aug 14, 2018 07:47pm

Its a last ditch effort by US to stay relevant in global politics. Similar to Europe, US is next in line to become spectator with big players (China, Russia) calling the shots.

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PHILOSOPHER (FROM JAPAN)

Aug 14, 2018 07:56pm

Befitting reply. Good going Mr. Erdogan.

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anonymouseee

Aug 14, 2018 07:58pm

Turkey will ride this out, no issues.

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Umair

Aug 14, 2018 08:02pm

Easy to blame US for all your economic woes.

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Alla Bux

Aug 14, 2018 08:06pm

You do that. That will tank the US dollar and will teach the USA a lesson it will not forget. Something about the elephant and the frog?

This is the problem when US targets countries with sanction. It always strengthen the leader, as leader can now divert country's attention towards US and forget everything else about development. Cant US find a better way than to disturb common people.

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A shah

Aug 14, 2018 08:19pm

A big sinking ship

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Patriot

Aug 14, 2018 08:31pm

@Falcon1 - barely few hundred million dollars? Are you serious? Turkey imported $21.2 billion worth of electronics goods in 2017.

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shaham

Aug 14, 2018 08:44pm

I was expecting more from him than this feeble move.

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ahamed

Aug 14, 2018 08:54pm

Turkey is a proud nation with a glorious past and must not be bullied by NATO MEMBER. BUT DT does not care about Nato brotherhood and other members are silently watching the show. Gutless before a bully. Does he care if Apple is hurt?

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Rakuntal

Aug 14, 2018 08:56pm

Another Venezuela in making..

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ali

Aug 14, 2018 09:06pm

While economic realities cant be ignored blindly, nations need to learn to stand up to economic bullying. Proud and strong nations learn to survive with less and with respect. Unfortunately material luxuries cornered by few individuals & nations have robbed individuals and entire nations of their self respect and have turned them into slaves. This injustice cant continue forever.

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Walid

Aug 14, 2018 09:08pm

Erdogan will lead Turkey to ruin.. with his intolerant and fundamentalist mindset.

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Raza

Aug 14, 2018 09:40pm

Real reason is Erdogan appointing his son in law as adviser to ministry of finance. EU did not like that. That were all the trouble started.

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Dilruba

Aug 14, 2018 09:56pm

Turkish Army must intervene

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Rajesh

Aug 14, 2018 11:02pm

Too many countries have taken advantage of trade relations with the USA. With Democrats in the Whitehouse, they did not have guts to call a spade a spade. With so many manufacturing jobs lost in the USA and with many countries dumping their Iron, Steel, and Aluminum into the USA.

Trump is right in blocking these countries in the self interest of the USA>

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turky

Aug 14, 2018 11:29pm

@Selim Ozturk
his son in law is finance minister, thats enough for them to go bankrupt

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WARRIs

Aug 14, 2018 11:53pm

A long journey starts with one small step and Erdogan has taken a step in the right direction. iPhone is just one little example and looks significant as iPhone has already fallen to third place among smart phone sales number (below Samsung and Huawei!!

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Anon

Aug 14, 2018 11:56pm

What Erdogan is doing is baffling! Does he understand basic Economics.

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Raj

Aug 14, 2018 11:58pm

That should send chill down the spine of Apple. Only joking.

Has he asked Turkey not to use google and Microsoft products too?

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Incredible

Aug 15, 2018 12:29am

The man has literally destroyed Turkey and its economy. So they will not use iPhone, MacBook, google, Facebook, Microsoft. Good Luck

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Amin

Aug 15, 2018 12:52am

All Muslim countries should support Erdogan in his battle against the only international terrorist, USA.
Long live Erdogan

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Ilyas Tarar

Aug 15, 2018 01:12am

US wants control of Turkish economy through its (Turkey's) central bank because Turkey is on a path of self reliance. It's all about stopping the ever increasing independence of Turkey from the US grip. Economic reforms in Turkey will be USA's strongest demand in the coming days. I can almost bet on that.

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Adeel

Aug 15, 2018 01:13am

US last card, and again it will loose. Trump is a business man not a statesman. This action will again be a dent to Trump adminstration. Sign of US failure in middle East and Afghanistan is now obvious.

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Adeel

Aug 15, 2018 01:14am

@Anon ur underestimating them.

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NK

Aug 15, 2018 01:31am

@Falcon1 Turkey is currently 32nd largest goods trading partner of US (not a small feat) with $17.4 billion in total (two way) goods trade during 2016. US exported goods totaled $9.4 billion; and US imports goods totaled $8.0 billion. The U.S. goods trade surplus with Turkey was $1.3 billion in 2016.
Apple product export to Turkey amounted to 62.2 million dollars which is 16th place for all Apple export to all countries.

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Iqbal Malik

Aug 15, 2018 03:05am

President Erdogan you are 100% right, free world and people of conscience should be with you. I am glad you told to Trump that Turkey is not a slave country. Just one more thing not everybody in America is like Trump or his gang.

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Contradiction

Aug 15, 2018 03:15am

Its the electronics, not Iphone only,
Apple as whole!!!
Cisco...
If not big time, but Its going to hurt Trump, he's a businessman, he understands that decreased profits is considered a loss in the business management.

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Shaukat Ali Khan

Aug 15, 2018 04:12am

Excellent.

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Aftab

Aug 15, 2018 04:58am

Even today the most important and critIcal electronics parts are manufactured in US.

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Maria enteparia onnuchoriu

Aug 15, 2018 05:18am

Erodogon needs to pay a high price for his gamble.

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Maria enteparia onnuchoriu

Aug 15, 2018 05:20am

Apple has cash reserve twice as big as Turky's GDP.

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Shy Guy

Aug 15, 2018 08:50am

Apple itself is bigger than Turkey

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Gaurav

Aug 15, 2018 05:22pm

Enemies of Turkey....just have to hope Erdogan stays in power for as long as possible. They just have to sit back and see Turkey self implode.

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Tahir A

Aug 15, 2018 06:28pm

Samsung and China are blatant copy cats of US products.

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J marfatia

Aug 15, 2018 09:03pm

He sounds pretty stupid with little knowledge of economics. He is busy creating his dynasty by promoting his family members in Council of Ministers.

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Imran

Aug 16, 2018 12:16am

Stand your ground against economic terrorism Recep.

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pre-Boomer Marine brat

Aug 16, 2018 01:44am

@Anon

Erdogan's boycott announcement is meant for his political base, which is largely composed of we in America call "rednecks". They are not bad people, but are ill-educated, ill-informed, and inclined to follow whatever populist (Left or Right) can get their attention at the moment.

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Bobby Paul

Aug 16, 2018 05:41am

Turkey is currently our 32nd largest goods trading partner with $17.4 billion in total (two way) goods trade during 2016. Goods exports totaled $9.4 billion; goods imports totaled $8.0 billion. US spend $600 billions on Defense only. Electronic trade is so tiny that it will hurt turkey but US will not even notice. Keep in mind US can push Samsong to ban selling its electronics in Turkey. Most of Samsung electronics has more then 40% American parts including its software. Even Turkey made mobile phone has more then 70% American parts including their software. So please do not do stupid things and hurt more yourself

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sourav ghosh

Aug 16, 2018 11:00am

Erdogan is a prie example of how hunger for power can ruin a country

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Zak

Aug 17, 2018 02:14pm

@Falcon1 Turkey was not only itself a big market for US products but also a gate way to cenral asia and bore the costs of logistics for US goods. It will be too costly for US to supply directly. US will lose the central asian market and others like China and Russia will move in. Eventually a bigger loss for US.

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Zak

Aug 17, 2018 02:15pm

@Anthony Messina Jr. it appears America is the common denominator. The common problem maker.

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Zak

Aug 17, 2018 02:16pm

@Crude And China controls US. In trade wars US will lose.

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Zak

Aug 17, 2018 02:19pm

@The truth Incirlik air base is where the coup plotters had a control room, was planned, implemented and the bomber planes took off at night with activity increased five fold, But the US airforce denied they knew anything.